Section LF 4 — Income Tax Act 2007: Partners in partnerships

LF 4 Partners in partnerships When this section applies (1) This section applies when a person who has a tax credit under section LF 1 is a partner in a partnership and, through the partnership, derives a dividend with an FDP credit attached. Limitation on amount of credit (2) The person’s credit is limited to an amount calculated using the formula— partner's income × partnership FDP credits − partner's supplementary dividend. partnership income Definition of items in formula (3) In the formula,— (a) partner’s income is the total assessable income of the person for the tax year derived as a partner of the partnership excluding— (i) an imputation credit or FDP credit attached to a dividend derived by the person: (ii) a supplementary dividend derived by the person as a non-resident partner of the partnership: (b) partnership income is the total assessable income for the tax year of all the partners of the partnership excluding— (i) all imputation credits and FDP credits attached to any dividends derived by the partners: (ii) all supplementary dividends derived by non-resident partners of the partnership: (c) partnership FDP credits is the total FDP credits attached to dividends and total supplementary dividends derived for the tax year by all partners of the partnership: (d) partner’s supplementary dividend is the total supplementary dividends for the tax year derived by the person as a non-resident partner of the partnership. Defined in this Act: amount , assessable income , dividend , FDP credit , imputation credit , non-resident , supplementary dividend , tax credit , tax year , Compare: 2004 No 35 s LB 1(1)(b), (4), (4A), (4B)